March 15 (Bloomberg) -- Magellan Midstream Partners LP will
expand the capacity of its Crane, Texas, to Houston crude-oil
pipeline to 225,000 barrels a day, according to a statement from
the company.

The expanded capacity is fully committed with long-term
agreements, according to the statement. The pipeline will move
oil production from West Texas to refineries in Houston and
Texas City, Texas, and help “alleviate the current crude oil
oversupply situation in Cushing, Oklahoma,” Michael Mears, the
company’s chief executive officer said in the statement.

Magellan, based in Tulsa, Oklahoma, announced Sept. 1 it
would proceed with the reversal of a portion of the Longhorn
oil-products pipeline that runs from Houston to El Paso, Texas,
and convert it to transport crude oil.

The reversed Crane-to-Houston portion of the pipe is
expected to begin operation at an initial capacity of 135,000
barrels a day early next year. The pipe will ramp up to the
expanded capacity of 225,000 barrels a day by mid-2013, the
company said.

The project is estimated to cost $375 million, including
the capacity expansion, according to the statement.